, Assignment 2/2 2024
FIRST SEMESTER
ASSESSMENT 2 (80 marks, 144 minutes)
MODULE DUE DATE UNIQUE NUMBER
TAX3701 19 November 2024 798141
NOTE: THE MARK YOU HAVE OBTAINED FOR THIS ASSESSMENT WILL FORM
75% OF YOUR YEAR MARK FOR THIS MODULE. YOUR TOTAL YEAR
MARK WILL CONTRIBUTE 20% TOWARDS YOUR FINAL MODULE MARK.
PLEASE ENSURE THAT THIS ASSESSMENT REACHES THE UNIVERSITY
ON OR BEFORE THE DUE DATE SINCE LATE SUBMISSIONS WILL RESULT
IN YOUR ASSESSMENT NOT BEEN MARKED! NO CORRESPONDENCE
OR TELEPHONIC CONVERSATION WILL BE ENTERED INTO IN THIS
REGARD. FURTHERMORE, UNDER NO CIRCUMSTANCE WILL AN
EXTENSION BE GRANTED.
WE REQUEST YOU TO SUBMIT YOUR ASSESSMENT ELECTRONICALLY
IN A SINGLE PDF FILE FORMAT.
PLEASE NOTE:
NO EMAILED SUBMISSIONS WILL BE ACCEPTED.
ASSESSMENT CRITERIA FOR THIS ASSESSMENT
For this assessment, you will need to have achieved the learning objectives set out in study units 1 to 6 as
contained in your Tutorial Letters.
, QUESTION 1 (40 marks, 72 minutes)
Crystal (Pty) Ltd (“Crystal”) is a South African resident company with a 31 March financial year end.
The company is a leading manufacturer and distributor of float glass, laminated glass, and various
mirror products to customers in and outside South Africa. Crystal is registered as a category A
vendor for Value-Added Tax (VAT) purposes and is not a Small Business Corporation as defined in
section 12E of the Income Tax Act no.58 of 1962. The South Africa Revenue Service (SARS)
recognises Crystal’s manufacturing processes as approved processes of manufacture.
All amounts exclude VAT unless stated otherwise.
The following income and expenditure statement was prepared by Crystal’s accountant for the
financial year ended 31 March 2024:
Notes Amount
(R)
Income
Revenue 1 3 450 000
Cost of sales 2 (887 500)
Investment income 3 312 300
Expenditure
Depreciation expense 4 (427 640)
Payment to Mrs Van Louw 5 (240 000)
Net profit before tax 2 207 160
Notes:
1. Revenue from sales made to customers situated outside South Africa amounted to R1 034 000.
This amount is not yet accounted for in the above income and expenditure statement.
2. The cost of sales amount was determined as follows:
R
Opening stock…………………………………….. 404 000
Purchases…………………………………………. 725 000
Closing stock……………………………………… (241 500)
Cost of sales………………………………………. 887 500
The accountant was uncertain on how to account for the closing stock. On 31 March 2024, it was
found that some of the closing stock items were damaged to an extent that it would be unethical
for Crystal to distribute them at discounted selling prices. These closing stock items are included
in the above closing stock figure at a total cost of R41 800.
FIRST SEMESTER
ASSESSMENT 2 (80 marks, 144 minutes)
MODULE DUE DATE UNIQUE NUMBER
TAX3701 19 November 2024 798141
NOTE: THE MARK YOU HAVE OBTAINED FOR THIS ASSESSMENT WILL FORM
75% OF YOUR YEAR MARK FOR THIS MODULE. YOUR TOTAL YEAR
MARK WILL CONTRIBUTE 20% TOWARDS YOUR FINAL MODULE MARK.
PLEASE ENSURE THAT THIS ASSESSMENT REACHES THE UNIVERSITY
ON OR BEFORE THE DUE DATE SINCE LATE SUBMISSIONS WILL RESULT
IN YOUR ASSESSMENT NOT BEEN MARKED! NO CORRESPONDENCE
OR TELEPHONIC CONVERSATION WILL BE ENTERED INTO IN THIS
REGARD. FURTHERMORE, UNDER NO CIRCUMSTANCE WILL AN
EXTENSION BE GRANTED.
WE REQUEST YOU TO SUBMIT YOUR ASSESSMENT ELECTRONICALLY
IN A SINGLE PDF FILE FORMAT.
PLEASE NOTE:
NO EMAILED SUBMISSIONS WILL BE ACCEPTED.
ASSESSMENT CRITERIA FOR THIS ASSESSMENT
For this assessment, you will need to have achieved the learning objectives set out in study units 1 to 6 as
contained in your Tutorial Letters.
, QUESTION 1 (40 marks, 72 minutes)
Crystal (Pty) Ltd (“Crystal”) is a South African resident company with a 31 March financial year end.
The company is a leading manufacturer and distributor of float glass, laminated glass, and various
mirror products to customers in and outside South Africa. Crystal is registered as a category A
vendor for Value-Added Tax (VAT) purposes and is not a Small Business Corporation as defined in
section 12E of the Income Tax Act no.58 of 1962. The South Africa Revenue Service (SARS)
recognises Crystal’s manufacturing processes as approved processes of manufacture.
All amounts exclude VAT unless stated otherwise.
The following income and expenditure statement was prepared by Crystal’s accountant for the
financial year ended 31 March 2024:
Notes Amount
(R)
Income
Revenue 1 3 450 000
Cost of sales 2 (887 500)
Investment income 3 312 300
Expenditure
Depreciation expense 4 (427 640)
Payment to Mrs Van Louw 5 (240 000)
Net profit before tax 2 207 160
Notes:
1. Revenue from sales made to customers situated outside South Africa amounted to R1 034 000.
This amount is not yet accounted for in the above income and expenditure statement.
2. The cost of sales amount was determined as follows:
R
Opening stock…………………………………….. 404 000
Purchases…………………………………………. 725 000
Closing stock……………………………………… (241 500)
Cost of sales………………………………………. 887 500
The accountant was uncertain on how to account for the closing stock. On 31 March 2024, it was
found that some of the closing stock items were damaged to an extent that it would be unethical
for Crystal to distribute them at discounted selling prices. These closing stock items are included
in the above closing stock figure at a total cost of R41 800.
